13 Steps to Establish and Build Business Credit

How do you build business credit from scratch? It takes 12 to 18 months of deliberate work in a fixed order: get an EIN from the IRS, incorporate as an LLC or corporation, open a dedicated business bank account, then layer on three to five trade lines that report to Dun and Bradstreet, Experian Business, and Equifax Business. Each step is small. Skip any of them and you stay personally on the hook for every dollar your business borrows for the next decade. That cost is not abstract. With Prime at 7.5% as of late 2026, going under-credentialed on a $250,000 working-capital request typically adds about two points to your rate and triggers a personal guarantee that erases the liability protection an LLC was supposed to give you. Below are the 13 steps in the order they actually need to happen, plus the ones most operators skip and pay for later, when an underwriter pulls a Dun and Bradstreet profile that does not exist yet.

The first step is to formally incorporate your business as an LLC or corporation and obtain an EIN from the IRS. Next, open a dedicated business bank account and establish a business phone number listed under your company name. These foundational steps ensure that credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Business can identify your company as a legitimate entity.

From there, apply for a business credit card or a net-30 vendor account that reports to the major business credit bureaus. Start with suppliers like Uline, Grainger, or Quill that are known for extending credit to newer businesses. Make all payments on time or early — your payment history is the single biggest factor in your business credit score, and a late net-30 is one of the funding mistakes that cost the most once an underwriter is pulling reports.

As your profile strengthens, graduate to larger trade lines, a business line of credit, and term loans. Monitor your Dun & Bradstreet PAYDEX score and Experian Intelliscore regularly, and work the specific moves that actually raise a business credit score rather than the ones that only feel productive. Within 12 to 18 months of consistent, responsible credit use, most businesses can establish a solid credit profile that qualifies them for competitive financing products with favorable rates and terms. Keep in mind that most lenders still price on your personal FICO even once your business file is strong, so it pays to know what credit score each business loan actually needs before you apply.